Ch 4 Ethical Paradigms and Foundations Flashcards
Give an example of something ethical but not legal.
Act of civil disobedience is ethical but not legal (class example)
Give an example of something legal but not ethical.
Abortion is legal but not ethical (class example)
According to our authors, the first resource for guidance when a businessperson or a professional accountant faces an ethical problem should be what?
- Corporate and professional codes of conduct
- EXPLANATION: b/c may apply specifically to problem at hand or provide principles, approaches and frameworks to make ethical decisions
Why should directors, executives and accountants understand consequentialism, deontology, and virtue ethics?
In the future, decisions will be increasingly scrutinized by factors other than profit
Business schools must incorporate ethics into curricula in order to receive what accreditation?
AACSB (Association to Advance Collegiate Business Schools)
Which organization prescribes ethics education requirements for accountants?
IFAC (Int’l Federation of Accountants)
The Ethical Decision Making Framework (EDM) proposes that decisions or actions be compared against what four standards?
1) Consequences or well-offness created in terms of net benefits or cost
2) Rights and duties affected
3) Fairness involved
4) Motivation or virtues expected
True or false.
The authors suggest that all four considerations of the EDM model must be examined for an action to be ethically defensible.
True
EDM. What philosophical theories underpin the EDM consideration of well-offness or well-being?
- Consequentialism
- Utilitarianism
- Teleology
EDM. What philosophical theories underpin the EDM consideration of respect for the rights of stakeholders?
- Deontology (rights and duties)
EDM. What philosophical theories underpin the EDM consideration of fairness among stakeholders?
- Kant’s Categorical Imperative
- Justice as impartiality
EDM. What philosophical theories underpin the EDM consideration of expectations for character traits and virtues?
- Virtue ethics
What are the seven basic components of any decision making model?
1) Determine facts
2) Define ethical issue
3) Id major principles, rules, values
4) Specify alternatives
5) Compare values and alternatives
6) Assess the consequences
7) Make decision
True or false.
Psychological egoism tells us how we ought to behave.
- False
- EXPLANATION: Tells us how we “do” behave, not how we “ought” to
True or false.
Ethical egoism tells us how we do behave.
- False
- EXPLANATION: Tells us how we “ought” to behave.
According to psychological egoism, how do humans behave?
- Out of self interest
- Even when we appear to be acting altruistically, we are acting out of self-interest
Which of following is an objection to psychological egoism?
a) There is a distinction between good people and bad people
b) We often do things we don’t want to do out of a sense of obligation
c) You are always conflicted b/w doing the right thing and what you want to do
b) We often do things we don’t want to do out of a sense of obligation
According to ethical egoism, how ought we to behave?
- Ought to behave in our own self interest
- Only have one duty and that is to ourselves
- And so we should sometimes do things for others, but only when it is in our self interest
Which of the following is an objection to ethical egoism?
a) We all require some charity now and then like from our parents at birth
b) There is only one extreme - absolute individualism
c) There is only one extreme - total altruism/collectivism
d) None of the above
a) We all require some charity now and then like from our parents at birth
Almost everyone leading up to the 2008 financial crisis looked after their own narrow self-interest. What is this ethical paradigm called?
Ethical egoism
Which of the following best describes deontology?
a) Greatest good for the greatest number; “needs of many outweigh the needs of the few”
b) Act in way that you would have others act; “don’t treat people as a means to an end”
c) Act in your own self interest; “your only duty is to yourself”
d) Act with prudence, courage, temperance, and justice
b) Act in way that you would have others act; “don’t treat people as a means to an end”
Which of the following best describes virtue ethics?
a) Greatest good for the greatest number; “needs of many outweigh the needs of the few”
b) Act in way that you would have others act; “don’t treat people as a means to an end”
c) Act in your own self interest; “your only duty is to yourself”
d) Act with prudence, courage, temperance, and justice
d) Act with prudence, courage, temperance, and justice
The AACSB Ethics Education Task force has called for business students to be familiar with what three philosophical approaches to ethical decision making?
1) Consequentialism (utilitarianism)
2) Deontology
3) Virtue Ethics
What is the goal of utilitarianism?
- GOAL: Maximize utility produced by a decision
